Iran War Fuel Hike Adds $100 to Long-Haul Flight Cost, Study Says

A man walks past parked Lufthansa aircraft at the airport as Lufthansa pilots are on a two-day strike, in Frankfurt, Germany, Thursday, March 12, 2026. (AP)
A man walks past parked Lufthansa aircraft at the airport as Lufthansa pilots are on a two-day strike, in Frankfurt, Germany, Thursday, March 12, 2026. (AP)
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Iran War Fuel Hike Adds $100 to Long-Haul Flight Cost, Study Says

A man walks past parked Lufthansa aircraft at the airport as Lufthansa pilots are on a two-day strike, in Frankfurt, Germany, Thursday, March 12, 2026. (AP)
A man walks past parked Lufthansa aircraft at the airport as Lufthansa pilots are on a two-day strike, in Frankfurt, Germany, Thursday, March 12, 2026. (AP)

Disruption to global oil supplies from the Iran war has added more than $100 to the price of long-haul flights from Europe, a cost likely to trigger higher ticket prices, campaign group Transport & Environment (T&E) said.

The rise in jet fuel prices has increased the average fuel cost by 88 euros ($104) for each passenger on long-haul flights leaving Europe and 29 euros on flights within Europe, T&E said.

Its analysis compared prices as of April 16, with those just before the US and Israeli war with Iran began on February 28.

Jet fuel ‌for a ‌flight from Barcelona to Berlin would be ‌26 euros ⁠more expensive per ⁠passenger, while a long-haul trip from Paris to New York would cost 129 euros more in fuel, T&E estimated in its analysis published on Tuesday.

European airlines are preparing for a challenging spring and summer, with jet fuel prices having risen to well over $100 a barrel since the Iran war began and concern growing that shortages could ⁠lead to flight cancellations. The European Union is set ‌to respond with guidelines on ‌managing limited jet fuel supply on Wednesday.

T&E calculated the average fuel burn ‌on all flight routes departing from Europe, and divided this by ‌the number of departing passengers, to calculate how much the fuel price spike would add to the cost per person.

Airline executives from carriers including Lufthansa, Ryanair and Air France-KLM said in March that they were likely ‌to pass on higher fuel costs to consumers if the Strait of Hormuz remained closed longer-term.

T&E ⁠said its ⁠calculations showed the extra costs from the fuel price spike were far bigger than the costs airlines face from complying with EU climate change policies.

"The Middle East crisis proves that our real vulnerability is a tank filled with foreign oil, not the laws designed to fix it," said Diane Vitry, director of aviation at T&E.

Airlines have called for a rollback of some EU climate policies, including a 2030 mandate to use synthetic green jet fuel as well as a review of upcoming carbon pricing rules.

As part of its package, the EU is set to push for energy independence through greater investments in green jet fuel.



Saudi Arabia Emerges as Global AI Hub as Tech Firms Base Regional Operations in Riyadh

The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
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Saudi Arabia Emerges as Global AI Hub as Tech Firms Base Regional Operations in Riyadh

The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia is no longer preparing for the age of artificial intelligence; it is helping shape it. After designating 2026 as the Year of AI, the Kingdom has evolved from a promising market into a major technology hub, attracting global companies eager to establish regional operations.

Reflecting that momentum, US data and AI company SAS selected Riyadh as its regional headquarters for the Middle East and North Africa a year ago. Founded in 1976, SAS is marking its 50th anniversary this year and is among the world’s leading providers of predictive analytics, data management, and machine learning solutions, serving industries including energy, finance, and healthcare.

Speaking to Asharq Al-Awsat on the sidelines of the Global AI Show, held in Riyadh on June 29-30, Khaled Moussa, Senior Customer Account Manager at SAS, said Saudi Arabia’s Vision 2030 has accelerated the adoption of advanced and sophisticated technologies.

He noted that the Kingdom’s modern digital infrastructure has enabled increasingly complex technological operations, fueling demand for SAS solutions and those of other technology firms across multiple sectors.

“The remarkable growth taking place in Saudi Arabia is attracting significant attention in the United States and beyond,” Moussa said. “That has encouraged international companies to make serious commitments to the market because of its rapid adoption of intelligent technologies.”

Although SAS has operated in Saudi Arabia since 1984, he added, “the market has reached a new level of maturity, both in terms of regulation and technology adoption.”

Moussa said SAS maintains a strong presence across several strategic sectors, particularly energy, through its collaboration with Saudi Aramco, the world’s largest energy company.

The company also works with the Saudi Electricity Company, providing advanced forecasting tools to predict electricity demand and support long-term planning, helping improve operational efficiency and future preparedness. SAS also supplies analytical solutions for the water sector to strengthen sustainability efforts.

Moussa highlighted two areas where predictive analytics deliver particular value. The first is market forecasting, where SAS helps organizations anticipate trends and make data-driven decisions while reducing unnecessary costs. The second is predictive maintenance, which allows industrial operators to identify potential equipment failures before they occur, minimizing downtime and avoiding costly repairs.

He also underlined SAS’s long-term commitment to developing Saudi talent. The company partners directly with universities to offer six-month paid internships, equipping students with practical experience before they enter the workforce.

In addition, SAS extends its training initiatives to schools and universities, teaching students how to apply AI technologies and preparing them for future careers.

The Global AI Show brought together more than 100 experts and global leaders from 80 countries, including government officials, innovators, and digital transformation specialists.

The event attracted more than 10,000 participants, 100 exhibitors and sponsors, and coverage from 200 international media organizations, reinforcing Riyadh’s growing role as a global platform for AI policymaking and international technology cooperation.


China Factory Activity Returns to Expansion Riding AI Global Boom

 A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
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China Factory Activity Returns to Expansion Riding AI Global Boom

 A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)

China's factory activity returned to expansion in June, driven by demand for chips, computers and other AI-related products, as robust export orders and front-loading to the United States to get ahead of tariffs offset weakness elsewhere in the economy.

The data suggest global AI investment is providing an important cushion for manufacturers in China's $20 trillion economy, even as disruption from the Middle East conflict and a prolonged property slump continue to weigh on broader growth.

The official manufacturing purchasing managers' index (PMI) rose to 50.3 in June from 50.0 in May, according to a survey by the National Bureau of Statistics (NBS). It beat a median forecast of 50.0 in a Reuters poll.

"Exports to meet international demand for chips and other AI-related products, as well as front-loading to get ahead of new US Section 301 ‌tariffs due late ‌July and improved domestic demand due to lower upstream costs underpinned the improvement," said ‌Dan ⁠Wang, China director ⁠of consultancy Eurasia Group.

The number of domestic infrastructure projects ticked up over the last month too, she added. US retailers have brought forward orders from China by four to six weeks to secure their inventories for Black Friday and Christmas holiday sales before the expected tariff hikes later this year, shipping executives said.

The sub-index for new export orders returned to expansion in June, rising to 50.1 from 48.6, while the production and overall new orders gauges edged up to 51.4 and 51.2 from 51.2 and 49.9, respectively.

Factory gate prices slipped to 48.2 from 51.9 in May, however, following five months of expansion, with ⁠employment also continuing to trend downward.

"The export strength is set to continue, driven by ‌global AI investment demand," said Xu Tianchen, senior economist at the Economist Intelligence ‌Unit. "Second, more policy easing will come."

"For example, fiscal spending has lagged behind budget arrangements, and it should accelerate in the coming months. There ‌is also room for monetary easing," he added.

The non-manufacturing PMI, which includes services and construction, improved to 50.2 ‌versus 50.1 in May, while the composite PMI came in at 50.6 compared with 50.5 a month earlier.

AI BOOM OR BUST

With the property crisis showing little sign of stabilizing and household spending remaining subdued, policymakers face the challenge of managing a two-speed economy.

There is enormous international demand for semiconductors powering data centers and advanced electronics, playing to China's manufacturing strengths, but there does not seem ‌to be much demand for anything else.

Exports of furniture, for example, grew just 1.9% in value terms year-on-year, according to the latest trade data for May, while shipments of ⁠automated data processing equipment ⁠jumped 60% over the same period.

Furthermore, retail sales, a proxy for domestic demand, fell for the first time in over three years, the most recent data for May showed, along with a faster slump in new home prices.

Julian Evans-Pritchard, head of China Economics at Capital Economics, said the improvement "remains heavily dependent on exports and AI-related tech," and warned that "despite the improvement in activity, the manufacturing sector appears to be slipping back into deflation."

China has set a 2026 growth target of 4.5% to 5.0%, slightly below last year's 5% expansion.

With signs of precautionary buying in the wake of Middle East-related price pressures fading, input costs rising and overseas customers running down inventories while awaiting a ceasefire, Chinese manufacturers may increasingly need demand from the world's largest consumer market to regain momentum.

A closely watched meeting in May between US President Donald Trump and Chinese leader Xi Jinping, however, produced no meaningful breakthroughs, whether on tariffs or Beijing using its influence over Tehran to end the Iran war.

"The sluggish data from the past few months will likely result in a notable slowdown in second-quarter GDP," said Lynn Song, chief economist for China at ING.

"We're looking for a slowdown to 4.6% year-on-year, with risks slightly balanced to the downside."


EU's Side of US Trade Deal to Come Into Force on July 1

FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
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EU's Side of US Trade Deal to Come Into Force on July 1

FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa

The European Union's side of a trade deal struck with the United States last year, which will remove import duties on many US goods, will come into force on July 1, said a formal European Union regulatory filing.

The EU said this ⁠regulation would apply ⁠from July 1 until December 31, 2029, Reuters reported.

"Where appropriate, the Commission shall submit together with the comprehensive assessment a legislative proposal to extend ⁠the period of application of this Regulation," added the regulatory filing.

Under the agreement, the EU agreed to remove import duties on US industrial goods and provide preferential access to US farm produce.

It will also extend duty-free imports of ⁠US lobster, ⁠a mini-deal struck with Trump during his first term as president.

The EU legislation expires at the end of 2029 and includes multiple safeguards that would allow the EU to suspend concessions if the United States breaches the trade deal's terms.